Next Generation of Financial Markets for Traders–A Must Read List


If you have not watched some of those videos below.. Or if you do not know majority of those sites. You must re consider what you know about todays financial market opportunities or modern financial markets.

Some names:

Courtney Smith – Coach of   Martin (Marty) Schwartz, also known as Buzzy, is a well-known Wall Street trader who has amassed a substantial fortune trading futures, stocks and options. He is also an author of the day trader’s ‘must read’ book “Pit Bull: Lessons from Wall Street’s Champion Day Trader”. And Coach of Michael Marcus has been one of the most successful traders. Over a ten-year period, he multiplied his company account by an incredible 2,500-fold. Both much better traders than Courtney Smith… But why do they get him as a coach?

A must watch from Courtney:


What Is the Difference Between the “Sharpe Ratio” and the “Sortino Ratio”? Never heard about it… Read what is below and reconsider reading more.

The Sortino ratio is a variation of the Sharpe ratio that only factors in downside risk. The Sharpe ratio is used more to evaluate low-volatility investment portfolios, and the Sortino variation is used more to evaluate high-volatility portfolios.


One must have a look at Mark Douglas book “Trading in the Zone” (Mark Douglas – Trading in the Zone (complete and formatted).pdf – Google Drive)an other must read and understand.


Prop Trading Companies…. They provide challenges and both instant funding..


Instant funding program


Inefficiencies in trading

– Use of Emulators.
– High-Frequency Trading (Manually or Using a Bot)
– Reverse Arbitrage Trading
– Hedge Arbitrage Trading.
– Latency Arbitrage Trading.
– Tick Scalping
– Grid trading
– One-sided Betting
– Arbitrage:

Arbitrage is the process of simultaneously transacting multiple financial securities to make a profit from the difference in prices.

This can be done in various ways such as:

the purchase and sale of the same securities in different markets (Spatial Arbitrage) or
simultaneous buying and selling of spot prices and futures contract of security or
buying the stock of a company being acquired while selling the stock of the acquiring company (Merger Arbitrage).
Arbitrage can be applied to financial instruments such as stocks, bonds, derivatives, commodities etc.

Arbitrage is a risk-free strategy, although this is not always the case

– Statistical arbitrage

Another way is statistical arbitrage or stat arb is a trading strategy based on the statistical mispricing of one or more assets compared to the expected future value of the assets.

Stat arb algorithms monitor financial instruments that are historically known to be statistically correlated or cointegrated, and any deviations in the relationship indicate trading opportunities.

Stat arb involves statistics, quantitative methods and a computational approach for data mining which can be traded algorithmically at high frequency. Statistical arbitrage includes different types of strategies such as pairs trading, index arbitrage, basket trading or delta-neutral strategies.

These strategies vary depending on the number, types, and weights of instruments in a portfolio and its risk-taking capacity.

For instance, one of the most popular examples of stat arb is Pepsi vs Coca-Cola stocks. Both stocks belong to the same sector, or type of business, and move in tandem as the same market events affect their prices.

Any deviations in the movement of prices in this pair, for instance, if Pepsi stock rises considerably compared to that of Coca-Cola, then one might short the Pepsi stock and long the Coca-Cola stock in anticipation to book profit.

– Index Inefficiency

The fact that a stock’s inclusion in an index usually results in a share price increase was observed quite a long time ago. According to strong market hypothesis by Fama (1970), this is an anomaly, as asset prices should already incorporate all public and private information. However, early researches carried out in the US, the UK and other capital markets have found that this effect is statistically significant and exploitation of it results in abnormal profits. In addition, studies have found other effects like increase in trade volume and size after the announcement of a stock’s inclusion in an index.


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